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OGE Energy’s operating revenues of $743.9 million in third-quarter 2016 rose 3.3% from the prior-year figure of $719.8 million.

Operational Highlights

Total sales in the reported quarter amounted to 8.7 million megawatt-hours (MWh), up from 8.3 million MWh in the prior-year quarter. The upside was driven by higher system and integrated market sales. The company’s customer count increased by 10,638 or 1.3%.

Total operating expenses in the quarter under review increased 3.6% year over year to $216.8 million mainly due to higher other operation and maintenance (O&M), and depreciation and amortization expenses. Operating income however increased 2.6% to $257.3 million from the year-ago figure of $250.8 million.

Interest expenses totaled $35.4 million in the reported quarter, down from $37.0 million a year ago.

Other Highlights of the Release

OGE Energy reported net income of $183.6 million in this quarter, up 65.1% from the prior-year figure of $111.2 million.

OG&E: OG&E's net income dropped 1.8% year over year to $160 million in the quarter. The decrease was mainly due to higher operating and income tax expenses, partially offset by higher gross margins.

Natural Gas Midstream Operations: The segment posted net income of $23 million in the third quarter, as against a loss of $50 million a year ago. A pre-tax charge of approximately $108 million incurred during the third quarter of 2015 and lower O&M expenses in the third quarter of 2016 contributed to the improvement in net income.

Guidance

OGE Energy has once again reaffirmed its 2016 consolidated earnings per share projection at the range of $1.72–$1.83.

OG&E, the regulated utility, also maintained its 2016 earnings projection at the range of $1.44–$1.50 per share.

DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.

Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.

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